Income Tax (Earnings and Pensions) Act 2003 section 478

Amount of charge

Section 478 sets out how to calculate the taxable amount when a chargeable event occurs in relation to securities options under section 476.

• The taxable amount is calculated as the gain realised on the chargeable event minus any deductible amounts (AG − DA).
• The gain realised on the chargeable event is determined under the rules in section 479.
• The amounts that qualify as deductible are specified in section 480.
• If the result of the formula is nil or negative, there is no taxable amount to charge.